Situational Analysis

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In this article we describe the Situational Analysis, often used to analyze organization's internal and external environment.

What and why a Situation Analysis?

The Situation Analysis is a good way for an organisation to remain up-to-date on the development in the market. By regularly conducting a Situation Analysis, a company enables itself to quickly respond to the changes in the market. The outcome from the Situation Analysis serves as input for the SWOT-Analysis. It is the basis for the strategic policy of a company. The Situation Analysis often comes forth in the marketing plan.

A Situation Analysis is done using quantitative and qualitative research and provides answer to the question: what happens around us and what is going to happen in the future? With help from the Situation Analysis, strategic plans are formulated.

What does Situation Analysis consist of?

The Situation Analysis consists of two components.

External Analysis

The first component is the External Analysis that answers about the opportunities and threats to a company. For this, the CICD Analysis is used. The CICD Analysis is a tool for mapping out the whole external environment of a company and consists of the following components:

Read more about the External Analysis by clicking on the following link: External Analysis.

Internal Analysis

The second component is the Internal Analysis. The Internal Analysis analyses the strengths and the weaknesses of a company.

Read more about the Internal Analysis by clicking on the following link: Internal Analysis.

Conclusion

After the internal and external analysis are conducted, there is a picture of the environment where a company is active. Strategic decisions can be taken based on this picture. All findings from the Situation Analysis will be taken into the SWOT-Analysis.

About the author

Edwin Muilwijk

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